Since securing $12 billion in revenues from the Ras El Hikma deal, Egypt has raised its expectations for the fiscal and economic indicators at the end of the fiscal year
Since securing $12 billion in revenues from the Ras El Hikma deal, Egypt has raised its expectations for the fiscal and economic indicators at the end of the fiscal year, significantly improving its forecast for the country’s total budget deficit and primary surplus.
In a statement released by the Ministry of Finance, Minister Mohamed Maait revealed that Egypt’s total budget deficit is now projected to reach 3.95% by the end of FY2023/2024, down from its previous prediction of 7.7%, after receiving the $12 billion.
The country expects a primary surplus of 5.75% of the country’s GDP by the end of the fiscal year on June 30th, a jump from the previous forecast of 2.2% of the GDP.
After grappling with a foreign currency shortage for over a year, 2024 recorded several positive inflows of hard cash to improve the country’s economic situation, including the Ras El Hikma deal and the International Monetary Fund’s decision to increase its $3 billion loan to $8 billion.
Signed in February, Egypt authorized the sale for the rights to develop the Ras El Hikma area to the UAE’s Abu Dhabi Developmental Holding Company (ADQ) with total investments of $35 billion, including $11 billion in Emirati deposits into the Central Bank of Egypt (CBE).
The Ras El Hikma project is expected to attract up to $150 billion in foreign investments during its development, and aims to create millions of job opportunities.
Egypt will receive 35% of the project’s profits, with the state committed to cash and in-kind compensation for the residents located on the city's lands.
